Naver Pay to enter Chinese payment market in 2023

South Korea's Naver Financial announced plans on Tuesday to bring its simple payment service, Naver Pay, to the Chinese market by the end of this year, signaling a strategic expansion to its operational territories.

Naver Pay, a service supporting various transactions like payments and money transfers through pre-registered bank accounts, debit cards, or credit cards, has recently inked a partnership deal with China's top payment networks, Alipay Plus and UnionPay.

Alipay Plus and UnionPay, leading players in China's mobile payment landscape, collectively affiliate with about 59 million merchants, reflecting a vast scope for Naver Pay's use across a majority of vendors in China.

This move positions Naver Financial as the inaugural domestic payment service provider to join forces with two or more of China's top three mobile payment companies, which include UnionPay, Alipay, and WeChat Pay.

Furthermore, Naver Pay has chosen to discontinue its partnership with Line Pay in the Japanese market starting in September.

The company expects the new collaborations with Alipay Plus and UnionPay to notably augment the number of associated merchants where Naver Pay can be utilized in Japan, underlining its strategy to drive business growth through new partnerships.

Write to Ji-Eun Jeong at jeong@hankyung.com